Reliance Industries Sees Heavy Call Option Activity Ahead of February Expiry

Feb 16 2026 10:00 AM IST
share
Share Via
Reliance Industries Ltd (RIL), a heavyweight in the Indian oil sector, has witnessed significant call option trading activity ahead of the 24 February 2026 expiry, despite the stock’s recent bearish price trend. The surge in call options at strike prices slightly above the current market level signals a complex interplay of investor sentiment, hedging strategies, and potential bullish positioning amid a challenging technical backdrop.
Reliance Industries Sees Heavy Call Option Activity Ahead of February Expiry

Recent Price Performance and Technical Context

Reliance Industries has been under pressure in recent sessions, recording a consecutive three-day decline that has eroded approximately 3.55% of its value. The stock closed at ₹1,410.10 on 16 February 2026, marginally down by 0.39% on the day, underperforming the broader oil sector which fell by 0.34%, while the Sensex managed a modest gain of 0.06%. Notably, RIL is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish technical stance.

Despite this, investor participation remains robust, with delivery volumes on 13 February surging to 72.58 lakh shares, an 84.25% increase over the five-day average. This heightened liquidity, with an average traded value supporting trade sizes up to ₹28.13 crore, suggests active engagement from market participants, possibly reflecting divergent views on the stock’s near-term trajectory.

Call Option Activity: Strike Prices and Open Interest

The most active call options for Reliance Industries are concentrated at the ₹1,420 and ₹1,430 strike prices, both expiring on 24 February 2026. The ₹1,430 strike leads in open interest with 6,192 contracts outstanding, while the ₹1,420 strike holds 5,382 contracts. Trading volumes for these strikes are substantial, with 5,048 contracts traded at ₹1,430 and 4,983 at ₹1,420, generating turnovers of ₹329.13 lakh and ₹430.78 lakh respectively.

This clustering of activity just above the current underlying price indicates that traders are positioning for a potential upward move beyond the current levels, or alternatively, are employing these strikes for hedging or spread strategies. The open interest build-up at these strikes suggests that market participants are anticipating volatility or a directional shift in the coming week.

Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!

  • - Rigorous evaluation cleared
  • - Expert-backed selection
  • - Mid Cap conviction pick

See Expert Backing →

Investor Sentiment and Market Positioning

The elevated call option volumes at strikes above the current price, combined with rising open interest, point to a cautiously optimistic stance among option traders. While the underlying stock’s technical indicators remain weak, the options market often reflects anticipatory positioning ahead of potential catalysts such as quarterly earnings, policy announcements, or sectoral developments.

Reliance’s mojo score currently stands at 62.0, with a mojo grade of Hold, downgraded from Buy on 6 January 2026. This reflects a tempered outlook based on fundamental and technical assessments. The company’s market capitalisation remains robust at ₹19,08,754.74 crore, categorising it firmly as a large-cap stock with significant institutional interest.

Given the stock’s recent underperformance relative to the sector and the Sensex, the call option activity may also represent hedging by institutional investors seeking to protect long positions or speculate on a rebound. The narrow trading range of ₹7.4 over recent sessions further suggests consolidation, which often precedes a breakout in either direction.

Expiry Patterns and Strategic Implications

With the 24 February expiry approaching, the concentration of call options at ₹1,420 and ₹1,430 strikes is particularly noteworthy. These levels are close to the current spot price, implying that traders expect the stock to test or surpass these thresholds within the next week. If the stock manages to close above these strikes at expiry, option holders stand to gain significantly, which could fuel further bullish momentum.

Conversely, if the stock remains below these levels, the call options may expire worthless, resulting in losses for buyers but gains for sellers who collected premiums. This dynamic often leads to increased volatility as expiry nears, with traders adjusting positions to manage risk and capitalise on price swings.

Reliance Industries Ltd or something better? Our SwitchER feature analyzes this large-cap Oil stock and recommends superior alternatives based on fundamentals, momentum, and value!

  • - SwitchER analysis complete
  • - Superior alternatives found
  • - Multi-parameter evaluation

See Smarter Alternatives →

Outlook and Investor Considerations

Investors analysing Reliance Industries should weigh the mixed signals from the options market against the prevailing technical weakness. The stock’s current trading below all major moving averages suggests caution, while the rising delivery volumes and call option interest hint at potential accumulation or speculative positioning.

Given the company’s dominant position in the oil sector and its large-cap status, it remains a key portfolio holding for many institutional investors. However, the downgrade in mojo grade from Buy to Hold indicates that fundamental momentum has softened, warranting a more measured approach.

For traders, the near-term expiry presents opportunities to capitalise on volatility through options strategies, particularly around the ₹1,420 to ₹1,430 strike prices. For long-term investors, monitoring upcoming quarterly results and sectoral developments will be crucial to reassessing the stock’s trajectory.

Summary

Reliance Industries Ltd’s recent call option activity reveals a nuanced market sentiment. While the underlying stock faces technical headwinds, the options market is pricing in a possible rebound or at least significant price movement near expiry. The concentration of open interest and trading volumes at strikes just above the current price underscores this anticipation. Investors should remain vigilant, balancing the stock’s fundamental strengths against short-term volatility and technical challenges.

{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News